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Cambridge Cleaners Started Business on January 1, 2013, and Immediately

Question 108

Multiple Choice

Cambridge Cleaners started business on January 1, 2013, and immediately purchased $5,000 of supplies to use in the business. At the end of the month, 30 percent of the supplies remains unpaid and 20% are still on hand. What amounts should appear as an expense on the financial statements for January, 2013? Income Statement Statement of Cash Flows


A) $5,000 $5,000
B) $5,000 $3,500
C) $4,000 $1,500
D) $4,000 $3,500

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